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Archive for environmental claims

Where is Canada’s Guidance on Environmental Claims?

There continues to be increased global activity and enforcement around environmental claims and greenwashing, the practice of making false or misleading environmental sustainability claims.
 
The U.S. is consulting on updates to its Green Guides, Europe is planning to introduce new laws to prevent greenwashing, and the U.K. is cracking down on net-zero claims.
 
Which leaves the Paper and Paperboard Packaging Environmental Council (PPEC) wondering where Canada is at in providing updated guidance on environmental claims.
 
In November 2021, the Competition Bureau of Canada – the independent law enforcement agency responsible for the enforcement of the Competition Act – archived its Environmental Claims Guide, leaving a gap in available resources for Canadian companies looking for clarity and guidance on the use of appropriate environmental claims in their marketing practices.
What is greenwashing_March 1
Global Activities 
 
The U.S. Federal Trade Commission (the federal agency that deals with consumer protection and competition issues in the U.S.) is currently consulting on updates to the Green Guides for the Use of Environmental Claims.
 
The FTC is seeking stakeholder feedback by April 24 in response to their consultation document, which outlines a series of 31 questions, including asking if there is a continuing need for the Guides, and if so, what changes should be made, as well as if updated guidance is needed for “recyclable” and “recycled content” claims.
 
Meanwhile, the European Commission proposed amendments to the Unfair Commercial Practices Directive and the Consumer Rights Directive which, if adopted, would provide clarity for companies to avoid greenwashing within the European Union. Companies would be required to substantiate environmental claims using the Environmental Footprint Methods, which uses 16 environmental impact categories to measure environmental performance of a product through its value chain and lifecycle. The proposal is said to represent the “most far-reaching attempt to address greenwashing.”
 
And in the U.K., the Committee of Advertising Practice and the Committee of Broadcast Advertising Practice published an update to their environmental claims guidance, stating that companies should avoid using unqualified carbon neutral and net-zero claims. The Competition and Markets Authority also recently announced plans to examine the accuracy of environmental claims made about household essential items, known as fast-moving consumer goods, such as food, beverages, and personal care products.
 
Where Does That Leave Canada?
 
Canadian companies do not have current guidelines or updated resources for making environmental claims.
 
In November 2021, the Competition Bureau archived Environmental claims: A guide for industry and advertisers – which was prepared in 2008 by the Bureau and the Canadian Standards Association to guide industry and advertisers on environmental claims – stating that the document “may not reflect the Bureau’s current policies or practices and does not reflect the latest standards and evolving environmental concerns.” The guide continues to be available online for reference, but the Bureau stated that it would “not be altered or updated as of the date of archiving.”
 
In September 2022, the Competition Bureau hosted the Competition and Green Growth Summit to better understand the relationship between competition policy and business sustainability goals. While no policy directives were made, discussions were held on enforcement in a greener economy, while the Commissioner of Competition spoke about the role of competition policy in helping consumers make informed choices in his opening remarks. The Competition Bureau recently released a What We Heard document with a summary of the Summit.
 
In addition to the Competition Bureau activities, the federal government is also holding a consultation on the future of competition policy in Canada. The government is reviewing the Competition Act, including the role and powers of the Competition Bureau. The consultation ends March 31, 2023, and input will be used to inform the government’s next steps, including potential legislative changes.
 
And as part of the federal Zero Plastic Waste Agenda, the government announced that new labelling rules are being developed that would prohibit the use of the chasing arrows recycling symbol, and other recyclability claims on plastic packaging, unless specific conditions are met. These conditions may include that at least 80% of Canadians have access to recycling systems that accept, sort, and re-process such plastics. The government will publish a proposed framework for the plastic packaging recycled content and labelling regulations for consultation later this year.
Timeline
When you add it all up, these separate but related activities signal the government priority of addressing environmental claims and greenwashing in Canada. But whether these activities result in potential changes to competition law, or the powers of the Competition Bureau, or new definitions related to “recyclability” remains to be seen, but it does not change the need for guidance on environmental claims.
 
It is clear that Canada, the U.S., Europe, and the U.K. are all taking measures to address greenwashing and the accuracy of environmental claims. But providing clear guidance and resources should also be a priority. Archived Canadian guidelines are not enough and PPEC encourages the Competition Bureau to provide updated resources on making environmental claims.

Rachel Kagan

Executive Director Paper & Paperboard Packaging Environmental Council (PPEC)

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What PPEC will be Watching in 2023

As the Paper and Paperboard Packaging Environmental Council (PPEC) continues to work on achieving its mission to promote the environmental sustainability of the Canadian paper packaging industry, we will also be closely monitoring the following key issues in 2023:

Extended Producer Responsibility and Recycling
 
Extended Producer Responsibility (EPR) is a policy approach in which a producer – a business that makes or sells obligated materials – is made financially and physically responsible for ensuring their products and packaging are properly managed at the end of their life.
 
While PPEC members have not historically been obligated stewards of these programs – our members typically engage in business-to-business transactions, and do not directly supply finished products to consumers – such recycling programs are critical as they are an important supply of our industry’s feedstock, allowing PPEC members to use high amounts of recycled content in the three major paper packaging grades.
 
This year will be busy with changes to existing programs and government consultations, and PPEC will be closely monitoring and participating in consultations. For more information on EPR for paper and packaging, and the status of provincial programs, please visit PPEC’s new EPR web page.
 
EPR also continues to ramp up across the border with several U.S. states enacting or developing packaging producer responsibility laws including Maine, Oregon, Colorado, and California. PPEC follows the activities of the American Forest and Paper Association and the Fibre Box Association to stay informed about U.S. EPR activity.
 
Landfill bans
 
As part of the Government of Canada’s commitment to reduce emissions by 40 to 45% below 2005 levels by 2030, and achieve net-zero emissions by 2050, they are looking at ways to reduce methane emissions from municipal solid waste landfills.
 
PPEC has long supported banning old corrugated boxes from landfill as it would reduce methane and ensure that valuable materials are diverted and recycled.
 
When organic waste – such as food, yard waste, and paper products – is disposed in landfills, it produces methane, a greenhouse gas.
 
A landfill disposal ban is a tool that stipulates that certain materials are not accepted for disposal; they are often used when there is a recycling program in place for that material. For example, Nova ScotiaPrince Edward Island, and Metro Vancouver have banned corrugated cardboard from their jurisdiction’s disposal sites.
 
The bottom line is that used boxes should not end up in landfill. Recycled paper packaging represents our industry’s feedstock as it is continually collected and recycled through residential and business recycling programs, allowing those materials to be remade into new paper packaging products again and again.
 
New Forestry Statistics
 
Sustainable forest management is a fundamental pillar for PPEC and its members and is essential to the Canadian paper-based packaging industry.
 
While most paper packaging made in Canada is produced with recycled content, the paper fibres it was originally made from came from a tree. However, the Canadian paper packaging industry doesn’t use much in the way of freshly cut trees, and the little that is harvested must be successfully regenerated by law. In 2019, the total forest harvest (for lumber and all paper grades including packaging) represented 0.2% of Canada’s forest land, according to The State of Canada’s Forests Annual Report, which is published annually by Natural Resources Canada.
 
The 2022 Annual Report was recently released and is a key source of data on Canada’s forests and its sustainable management, which PPEC uses to correct misinformation about the Canadian paper-based packaging industry.
 
PFAS
 
PPEC continues to monitor government activity related to PFAS, or perfluoroalkyl and polyfluoroalkyl substances, which are a class of chemicals that, in some cases, have been found to be potentially harmful to the environment and human health.
 
As perfluoroalkyl substances can provide oil, grease, and water resistance, PFAS can be found in some types of paper-based food packaging.
 
The Government of Canada is currently considering activities that would address PFAS as a broad class and published a notice of intent in the Canada Gazette. In the U.S., several states have passed laws banning intentionally-added PFAS in packaging. New York’s new law took effect December 31 and prohibits the intentional application of PFAS in packages or packaging components designed for direct food contact, which can include wrappers, bags and tubs that are made from paper, paperboard, and other materials derived from plant fibres.
 
Environmental Claims and Definitions
 
The issue of greenwashing continues to be an increasingly important priority of enforcement agencies across North America and globally. In Canada, environmental claims are overseen by the Competition Bureau who archived its enforcement guidelines on environmental claims last year. In the U.S., the Federal Trade Commission oversees consumer protection and competition issues, and is currently consulting on potential changes to their Green Guides which provide guidance on the use of environmental and recycling claims. And in Europe, the European Union is apparently reviewing the definition of what counts as “recyclable” as they look to overhaul their packaging waste law.
 
Given recent enforcement activity surrounding environmental claims, and confusion around some of the terminology – recovery, collection, recycling, diversion, end markets – PPEC will be looking to address some of the issues with definitions, how it impacts data, and how they relate to environmental claims over the next year.
 
Carbon and Climate Change
 
PPEC continues to monitor government and industry climate change and carbon reduction initiatives. While paper-based packaging is highly recyclable and recycled across Canada and made from a renewable resource using sustainable forest management practices, we are currently gathering available data related to carbon emissions of paper packaging material.

Rachel Kagan

Executive Director Paper & Paperboard Packaging Environmental Council (PPEC)

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